How the DIME method works
The DIME formula is a simple way to size a term life policy. Instead of guessing a multiple of your salary, you add up the specific obligations your family would need to cover: outstanding debts, years of lost income, the mortgage, and future education costs. Subtract any coverage you already have, and the result is your target death benefit.
DIME vs. "10x your income"
The 10x rule is quick but ignores your actual debts and kids. DIME usually gives a higher, more accurate number for parents with a mortgage, and a lower one for single people with few obligations.
Want the full walkthrough? Read our guide: How much life insurance do I need?